Arrowhead Pharmaceuticals, Inc.
ARWR Healthcare Biotechnology
Arrowhead Pharmaceuticals, Inc.’s revenue for fiscal 2025 (year ended September 2025) was $829.4 million, up 23,258.2% from fiscal 2024. In the quarter to June 2026, revenue grew 171.0%, EPS fell 7.94%, free cash flow fell 15.4% and total debt rose 259.5%, each against the same quarter a year earlier.
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Arrowhead Pharmaceuticals, Inc. (ARWR) Altman Z-score
Arrowhead Pharmaceuticals, Inc.'s Altman Z-score for fiscal 2025 is 2.98, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.98 | 4.62 |
| FY2024 | −1.64 | (3.28) |
| FY2023 | 1.64 | (4.30) |
| FY2022 | 5.94 | (5.59) |
| FY2021 | 11.53 | (30.20) |
| FY2020 | 41.73 | 26.77 |
| FY2019 | 14.96 | (36.91) |
| FY2018 | 51.86 | 49.70 |
| FY2017 | 2.16 | (0.11) |
| FY2016 | 2.27 | (1.53) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.55 | — | 0.65 | |
| Retained earnings / total assets | (1.17) | — | −1.64 | |
| EBIT / total assets | 0.07 | — | 0.23 | |
| Market value of equity / total liabilities | 5.23 | — | 3.14 | |
| Sales / total assets | 0.60 | — | 0.60 | |
| Altman Z-score | Grey zone | 2.98 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | 0.82 | ||
Z and Z″ put Arrowhead Pharmaceuticals, Inc. in different zones: grey zone by Z, distress zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| PTGX Protagonist Therapeutics, Inc. compare | 61.6× |
| KYMR Kymera Therapeutics, Inc. compare | 23.2× |
| AXSM Axsome Therapeutics, Inc. compare | 6.9× |
| TGTX TG Therapeutics, Inc. compare | 6.3× |
| CAI Caris Life Sciences,�Inc. compare | 3.5× |
| ARWR Arrowhead Pharmaceuticals, Inc. | 3.0× |
| CYTK Cytokinetics, Incorporated compare | −2.0× |
| SYRE Spyre Therapeutics, Inc. compare | −3.8× |
| ABVX Abivax SA Sponsored ADR compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets